Almost a decade on from the launch of Bitcoin, cryptocurrencies continue to
generate headlines and intense debate. What started as an underground
experiment by a rag tag group of programmers armed with a Libertarian manifesto
has now resulted in a thriving $230 billion ecosystem, with constant on-going
innovation. Scholars and researchers alike are realizing that cryptocurrencies
are far more than mere technical innovation; they represent a distinct and
revolutionary new economic paradigm tending towards decentralization.
Unfortunately, this bold new universe is little explored from the perspective
of Islamic economics and finance. Our work aims to address these deficiencies.
Our paper makes the following distinct contributions We significantly expand
the discussion on whether cryptocurrencies qualify as "money" from an Islamic
perspective and we argue that this debate necessitates rethinking certain
fundamental definitions. We conclude that the cryptocurrency phenomenon, with
its radical new capabilities, may hold considerable opportunity which merits
deeper investigation.